A financial power of attorney (POA) is a document that allows you to designate someone else to make financial decisions on your behalf. This person is called your agent or attorney-in-fact. The POA can be very general, giving your agent broad authority to decide your finances, or it can be more specific, outlining what your agent can and cannot do.
What are the Benefits of Having a Financial Power of Attorney?
When it comes to estate planning, everyone should have a few key documents. A will is one of those documents, and another is a financial power of attorney. While a will dictates how your property is distributed after you die, a financial power of attorney allows someone else to make financial decisions on your behalf if you cannot do so yourself. There are several benefits to having a financial power of attorney in place.
First, it can provide peace of mind in knowing that someone you trust has the authority to make decisions on your behalf if something happens to you. Second, it can help ensure that your wishes are carried out even if you cannot communicate them yourself. And third, it can save your loved ones time and money if they need to handle your finances after you die.
What Happens if You Don’t Have a Financial Power of Attorney?
A POA is a legal document that designates someone else to make financial decisions on your behalf if you become incapacitated. If you do not have a POA in place and you become incapacitated, your loved ones will need to petition the court for guardianship over your affairs. Unfortunately, this process can be costly and time-consuming, and there is no guarantee that the court will appoint your loved ones as guardians.
How Can You Choose the Right Financial Power of Attorney for Your Needs?
When choosing a financial power of attorney, it is important to find a qualified and trustworthy attorney. When interviewing potential attorneys, you should ask the following questions: What experience do you have with estate planning? What are your fees? Do you have any conflicts of interest? Can you provide me with references?
It is also important to choose an attorney who understands your specific needs and goals. For example, some attorneys specialize in estate planning for wealthy clients, while others focus on helping families with modest assets. You should also consider the age and health of the potential attorney and their availability.
If you already have an estate plan in place, it is important to review it periodically and update it. This may include changing or adding a financial power of attorney.
